‘The fact that the dollar hasn’t broken under 110 on this news [US conducting air strikes in Syria] shows how strong that level is, but we are still waiting to see Russia’s reaction to the U.S. move.’ – Sumitomo Mitsui Trust (based on Reuters)
There has been barely any movement registered in the USD/JPY currency pair for the third day in a row yesterday, with the 110.50 mark still proving to be a tough psychological support. Today’s NFP data is a double-edged sword, as from one hand the psychological support suggests the Greenback could continue avoiding further losses, while on the other technical indicators imply the given pair could fall under 110.00. Such a decline would even pave the way towards the descending channel’s support line at 109.26 to be put to the test, which is also bolstered by the monthly S1, the weekly S2 and the lower Bollinger band. We expected the US Dollar to decline today.
Traders’ sentiment remains bullish at 67%, but the share of purchase orders is significantly higher, up from 34 to 54%.